The post-pandemic world leads us to open many business opportunities in which it enters the real estate sector. But Why invest in real estate in Chile? En Hispanic Entrepreneurs We give you some clues of what are the benefits that this area offers you.
What are the categories of real estate investment?
The field of real estate is very broad, so there are different ways to obtain profitability. Investors in Chile can lean on:
1 Sublet: You can lease areas of your property that you do not occupy such as bedrooms, basements or parking lots.
2-Buy-sell: You can also choose toAcquire and resell properties in areas of greatest demand. On many occasions you can buy used properties to remodel to add value and put them up for sale.
3-Rent: It is also ideal to buy a property and prepare it for rent in a certain period of time.
4-Property management: It is one of the most profitable types of real estate investment. Apart from buying or selling properties, he acts as an intermediary, offering administration services covering the payment of common expenses and maintenance.
5-Real estate funds: It is an inditect investment in real estate through a private fund that is dedicated to buying or building real estate to sell or lease.
Why invest in real estate in Chile?
Whatever country it is, it is always a good idea to invest in real estate because it strengthens the heritage and the properties increase in value over time. It involves less risk than other capital market instruments. You can take advantage of pre-sale auctions, among other resources.
But if you choose to invest in the Chilean real estate sector, this is the right time because the global situation due to the pandemic led to a reduction in prices in all sectors of the country, especially in real estate.
In addition, in Chile four out of ten people buy homes that they use as a long-term investment and decide to rent it. This is why the real estate market is reviving and many opportunities are opening up by offering reasonable down payments, as well as other benefits and payment flexibilities.
It must be taken into account that the properties will be maintained and will increase in value over time. On the other hand, you can have access to practical mortgage rates, the demand for rent increased after covid-19 and you can get tax benefits for mortgage loans.
The large number of properties in circulation causes prices to be lower, which indicates that it is the right time to invest, so if you have capital this is a way to make it profitable safely.
Another point in favor is that these types of transactions are immune to inflation.. Remember that in Chile real estate investments are made in the Development Unit that guarantees the value of real estate. It increases in positive correlation with the inflationary trend and that adjusts the Central Bank of Chile.
Tips for investing in real estate in Chile
Specialists in the field recommend opting to invest in communes with greater real estate development and where demand is most concentrated.
Also that he thinks beyond Santiago. Although the capital is home to the largest population and the highest rental demand, it also considers the Andes mountains or the wine region that encompasses several regions of the country.
Cities such as Viña del Mar or Valparaíso are also in high demand because they have a large public that needs to rent from March to December and on holidays. They have a lower price than Santiago. Other regional capitals have a higher level of quality of life than the capital.
You can focus on housing projects or tourism development with potential locations. These have their own peculiarities and submarkets. It is best to contact local experts who know the business for advice when making the investment in real estate in Chile.
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